l O D O W N I N G S T R E E T

5 September 1979

The Rt Hon James P r i o r MP S e c r e t a r y o f S t a t e D e p a r t m e n t o f Employment 8 St James's Square LONDON SYv'l

I d i s c u s s e d t h e f o l l o w - u p t o T r a d e s U n i o n C o n g r e s s y e s t e r d a y , w i t h Angus, a nd we a g r e e d t h a t I w o u l d p u t some t h o u g h t s down on p a p e r as t o how we s h o u l d do t h e f o l l o w - u p . The a t t a c h e d n o t e i s s e l f - e x p l a n a t o r y , and I have c o p i e d t o t h e C h a n c e l l o r , S e c r e t a r y o f S t a t e f o r T r a d e , and t h e P a y m a s t e r G e n e r a l .

JOHN HOSKYNS

FOLLOW-UP TO CONGRESS

1. INTRODUCTION

1.1 The " Q u i c k Campaign" i s d e s i g n e d t o h e a d - o f f e x c e s s i v e wage c l a i m s o v e r t h e n e x t two t o t h r e e m o n t h s . T h i s w i l l l e a d i n t o t h e "Long Campaign", on w h i c h Norman S t r a u s s and I a r e w o r k i n g ( w i t h a p a p e r t o be r e a d y i n e a r l y O c t o b e r ) . The Long Campaign must p r o p o s e a c o h e r e n t s t r a t e g y f o r c o m m u n i c a t i o n s r i g h t t h r o u g h t o t h e n e x t e l e c t i o n .

1.2 The Q u i c k Campaign must, o f c o u r s e , l e a d n a t u r a l l y i n t o t h e Long Campaign. I t has t o do t h r e e t h i n g s : f i r s t , keep t h e u n i o n l e a d e r s on t h e m o r a l and i n t e l l e c t u a l d e f e n s i v e ; s e c o n d , keep hammering home t h e b a r e e s s e n t i a l s o f ec o n o m i c r e a l i t y ; t h i r d e s t a b l i s h beyond any d o u b t t h e Government's d e t e r m i n a t i o n t o c u r e i n f l a t i o n , l e a v i n g t h e r e s p o n s i b i l i t y f o r e x c e s s i v e unemployment f i r m l y w i t h t h e an i o n s .

2. CONGRESS AND THE CHANCELLOR'S SPEECH

2.1 The o b j e c t i v e o f t h e C h a n c e l l o r ' s s p e e c h was t o s e t t h e c r i t e r i a by w h i c h t h e m e d i a , and t h u s t h e p u b l i c , c o u l d j u d g e t h e r e l e v a n c e o f C o n g r e s s , and t h u s o f t h e u n i o n movement, t o t h e c o u n t r y ' s p r o b l e m s . The a i m was t o t r y t o b r e a k o u t o f t h e p a s t h a b i t s o f t h o u g h t , i n w h i c h p e o p l e have been p e r s u a d e d t o a c c e p t t h a t a l l l i f e ' s h a r d s h i p s a r e t h e r e s u l t o f C o n s e r v a t i s m , t h e m a r k e t , c a p i t a l i s m , and t h e p r i v a t e s e c t o r ; w i t h t h e t r a d e u n i o n s c a s t as b e n e v o l e n t p r o s e c u t i n g c o u n c i l on b e h a l f o f a l l o r d i n a r y d e c e n t e x p l o i t e d p e o p l e e t c . I t i s e s s e n t i a l t h a t t h i s p r o c e s s o f p u t t i n g t h e onus o f p r o o f on t h e u n i o n s - a p r o c e s s w h i c h s t a r t e d l a s t w i n t e r - s h o u l d be f o l l o w e d t h r o u g h . Hence t h e C h a n c e l l o r ' s s p e e c h .

2.2 I t seems t o have w o r k e d q u i t e w e l l , b u t i t i s i m p o r t a n t t h a t o u r messages s t a y c r i t i c a l b u t r e a s o n a b l e , as t h e C h a n c e l l o r ' s was, l e a v i n g t h e more e x p l i c i t a t t a c k s , r i d i c u l e , e t c , t o t h e media.

3. WHAT SHOULD THE FOLLOW-UP ACHIEVE?

3.1 H a v i n g t o l d p e o p l e what t o l o o k f o r a t B l a c k p o o l , we nov have t o make s u r e t h e y d i d s o . The m e d i a w i l l no d o u b t do some o f t h i s f o r u s , b u t we c a n ' t l e a v e t h a t t o c h a n c e .

3.2 The f o l l o w - u p s h o u l d t h e r e f o r e r e m i n d p e o p l e o f t h e c r i t e r i a p r o p o s e d by t h e C h a n c e l l o r and t h e n s u mmarise and comment on t h e B l a c k p o o l p r o c e e d i n g s t o show how t h e y measured up.

3.3 The way we do i t has t o s t r e n g t h e n o u r own a u t h o r i t y . We s h o u l d n o t p u l l any p u n c h e s , b u t i t s h o u l d be s c r u p u l o u s l y h o n e s t , r e a s o n a b l e , q u e s t i o n i n g ; on no a c c o u n t s c o r n f u l o r r i d i c u l i n g .

1

^SUGGESTIONS FOR FOLLOW-UP I u n d e r s t a n d from t h e Paymaster G e n e r a l t h a t t h e S e c r e t a r y of S t a t e f o r Employment i s l i k e l y t o be i n t e r v i e w e d on r a d i o , perhaps a l s o TV, on Thursday o r F r i d a y . I f t h a t i s t h e c a s e or he d e c i d e s to make a s h o r t s t a t e m e n t , I s u g g e s t a t Appendix A some p o s s i b l e i n g r e d i e n t s . I a l s o u n d e r s t a n d from t h e Paymaster t h a t t h e S e c r e t a r y of S t a t e f o r T r a d e w i l l be making e i t h e r a s p e e c h or p u b l i s h i n g a l e t t e r t o h i s c o n s t i t u e n t s on S a t u r d a y , f o r t h e Sunday p a p e r s , and t h a t t h i s would be more of a complete rounding-up of t h e B l a c k p o o l p r o c e e d i n g s . Appendix B i s a v e r y rough s h o t a t t h e s o r t o f t h i n g he might s a y . I t quote s union l e a d e r s ' own words, a s t h e y a r e v e r y t e l l i n g .

JH 5 September 1979

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2

APPENDIX A

SOME POINTS FOR INTERVIEWS: SECRETARY OF STATE FOR EMPLOYMENT

You might l i k e to c o n s i d e r making some of t h e f o l l o w i n g p o i n t s

( 1 ) Most people know now t h a t t h e B r i t i s h economy f a c e s a rough p a s s a g e over t h e next c o u p l e of y e a r s . I n h i s s p e e c h l a s t weekend, th e C h a n c e l l o r urged t h e union l e a d e r s t o t a l k about t h e r e a l problems and i s s u e s t h i s r a i s e d r a t h e r t h a n u s i n g C o n g r e s s i n t h e t r a d i t i o n a l way, a s an a n t i - C o n s e r v a t i v e p o l i t i c a l r a l l y . P e o p l e must judge f o r t h e m s e l v e s , but I t h i n k t h a t most of us would a g r e e t h a t B l a c k p o o l was a d i s a p p o i n t i n g and d e p r e s s i n g s p e c t a c l e . Having r e j e c t e d t h e s u g g e s t i o n t h a t they a r e l i v i n g i n an economic dream wo r l d , much of what was s a i d c o n f i r m e d beyond any doubt t h a t t h ey a r e s t i l l dreaming.

( 2 ) I am a f r a i d t h a t I was v e r y d i s a p p o i n t e d w i t h Tom J a c k s o n ' s opening s p e e c h as P r e s i d e n t . He s a i d ( I quote him v e r b a t i m h e r e s o t h a t you can p a r a p h r a s e him as you l i k e ) : "We cannot and i n d e e d w i l l not r e s t r a i n wage demands when t h e Government has abandoned a l l a t t e m p t s t o c o n t r o l t h e r o c k e t i n g l e v e l o f p r i c e s . . . . We must d e f e n d our members' l i v i n g s t a n d a r d s . "

Many pe o p l e must d e s p a i r when they hear s t a t e m e n t s of t h a t k i n d . S u r e l y Mr J a c k s o n knows t h a t t h e r e - a c c e l e r a t i o n of i n f l a t i o n i s l a r g e l y t h e r e s u l t o f t h e 1978 p r e - e l e c t i o n boom and v e r y b i g wage awards a t t h e b e g i n n i n g of t h i s y e a r , t o g e t h e r w i t h L a b o u r ' s r e a d i n e s s to p r i n t t h e money f o r i t ? S u r e l y he knows t h a t o i l p r i c e s have r i s e n s u b s t a n t i a l l y s i n c e we came i n t o o f f i c e , and t h a t a f f e c t s a l m o s t a l l p r i c e s ? Does he t h i n k t h a t L a b o u r ' s attempt t o c o n t r o l p r i c e s between 1974 and 1979 - when we had t h e h i g h e s t i n f l a t i o n e v e r - was a s u c c e s s ? Does he r e a l l y t h i n k t h a t he can solve t h e s e problems,a by s t o p p i n g work and demanding h i g h e r wages? Pe r h a p s he b e l i e v e s t h a t we r e a l l y can a l l go on s t r i k e f o r West German l i v i n g s t a n d a r d s ? Doesn't someone i n t h e TUC have a c l e a r enough u n d e r s t a n d i n g of e l e m e n t a r y economics t o t o a b l e t o e x p l a i n t h e s i m p l e r e a l i t i e s t o t h e i r members? How on e a r t h a r e "days o f a c t i o n " by t h e union movement - or more p r e c i s e l y , days of i n a c t i o n - going t o make t h e i r members or anyone b e t t e r o f f ? We've he a r d t h i s s o r t o f s t u f f now f o r t h e l a s t 15 y e a r s . I t r e a l l y i s time f o r something d i f f e r e n t .

1A

*3> I have s a i d , on many p r e v i o u s o c c a s i o n s , t h a t u n i o n l e a d e r s and o f f i c i a l s s h o u l d n o t c l a i m t o speak f o r a l l t h e i r members, s i n c e b a r e l y h a l f o f a l l t r a d e u n i o n i s t s v o t e L a b o u r . T h i s t i m e we saw a r e s p o n s i b l e and m o d e r a t e u n i o n l e a d e r - Mr T e r r y D u f f y ­a d m i t t i n g p u b l i c l y t h e e x t r e m e L e f t - w i n g p r e s s u r e on h i m t o t a k e i m m o d e r a t e a c t i o n s .

What we a r e b e g i n n i n g t o s e e , I t h i n k , i s t h e c r i s i s o f L e f t and R i g h t w h i c h i s r o c k i n g t h e L a b o u r P a r t y i t s e l f , now b e g i n n i n g t o show i n t h e t r a d e u n i o n s . I n t h e p a s t , s u g g e s t i o n s o f L e f t - w i n g i n f l u e n c e have a l w a y s been d i s m i s s e d as "Reds u n d e r t h e b e d s " s c a r e s . I n d e e d , j u s t b e f o r e t h e e l e c t i o n , Mr C a l l a g h a n and Mr M u r r a y pooh-poohed s u c h r e m a r k s . Now, Shadow M i n i s t e r s and t r a d e u n i o n l e a d e r s a l i k e a r e p u b l i c l y a d m i t t i n g t h a t t h e y were t r u e . I hope t h a t message i s n o t l o s t on t h e p u b l i c .

( 4 ) So i t ' s been a d i s a p p o i n t i n g and w o r r y i n g C o n g r e s s , b e c a u s e i f t r a d e u n i o n l e a d e r s a n d n e g o t i a t o r s f a i l t o u n d e r s t a n d t h e measures w h i c h any Government has t o t a k e t o s q u e e z e o u t i n f l a t i o n - i n d e e d , Mr H e a l e y t o o k j u s t t h e s e measures i n 1975 b e f o r e t h e y l o s t t h e i r n e r v e a g a i n i n 1978/9 - t h e y a r e g o i n g t o do t h e i r own members g r e a t i n j u r y i n t e r m s o f unemployment. But I am n o t t o o d e s p o n d e n t . I b e l i e v e t h a t as t h e C o n g r e s s a t m o s p h e r e f a d e s , r e a l i t y w i l l , a f t e r a l l , b e g i n t o b r e a k i n . On o u r s i d e , t h e r e f o r e , we must p a t i e n t l y and p e r s i s t e n t l y e x p l a i n t h e r e a l i t i e s and p r e p a r e p e o p l e f o r them.

•i

•

APPENDIX B

^ > S S I B L K STATEMENT OR SPEECH: SECRETARY OF STATE FOR TRADE

The days of T r a d e s Union C o n g r e s s a t B l a c k p o o l have been days of judgment. They have g i v e n t h e people of t h i s c o u n t r y a chance to s e e what s o r t o f l e a d t h e TUC i s going t o g i v e t o union members and t h e c o u n t r y as a whole, i n t h e d i f f i c u l t t i m e s ahead.

L a s t weekend t h e C h a n c e l l o r s a i d t h a t t h e union l e a d e r s were l i v i n g i n a dream w o r l d and urged them t o come out of t h a t dream b e f o r e i t was too l a t e . E v e r y t h i n g we saw a t B l a c k p o o l s u g g e s t s t h a t t h e C h a n c e l l o r was r i g h t .

The burden of p r o o f now r e s t s on t h e u n i o n s . They a r e on t r i a l . I t i s f o r t h e i r l e a d e r s t o show t h e c o u n t r y what the u n i o n s a r e f o r and how w e l l t h e y can do i t . The e x p e r i e n c e o f l a s t w i n t e r , and t h e s p e e c h e s of l a s t week, w i l l t o g e t h e r have e n s u r e d t h a t t h e p u b l i c w i l l look more c r i t i c a l l y a t t h e t r a d e u n i o n s . I n t h e p a s t , union l e a d e r s have tended t o a t t a c k anyone who c r i t i c i s e s them. That has been v e r y u n h e a l t h y f o r t h e c o u n t r y b e c a u s e i t has meant t h a t genuine d i s c u s s i o n o f what i s wrong, and p r o p o s a l s f o r change, n e v e r t a k e s p l a c e .

Look f o r example a t l a s t week's unanimous a p p r o v a l of a r e s o l u t i o n demanding " v i g o r o u s r e s i s t a n c e to fundamental a t t a c k s on t r a d e union r i g h t s " . MKKKtKKSnummuUBBBtmKMBGUBBBBBBUBB&L, f h e s e r i g h t s a r e not God-given. I t i s t h e c o u n t r y , through i t s d e m o c r a t i c a l l y - e l e c t e d Government, t h a t d e c i d e s whether c e r t a i n groups s h o u l d , i n p a r t i c u l a r c i r c u m s t a n c e s , have l e g a l i m m u n i t i e s which a r e d e n i e d t o o t h e r s . No-one e l s e i n our s o c i e t y p r oposes v i g o r o u s r e s i s t a n c e to changes i n t h e law.

We h e a r d Mr Joe Wade o f t h e N a t i o n a l G r a p h i c a l A s s o c i a t i o n s a y i n g , " I f our opponents w i l l not l i s t e n t o t h e v o i c e of r e a s o n , l e t them f e e l t h e f u l l w e i g h t o f our i n d u s t r i a l s t r e n g t h " . Who i s sounding r e a s o n a b l e h e r e ?

A f t e r t h e e v e n t s o f i l a s t w i n t e r , union l e a d e r s a r e l e s s ready to a c c u s e t h e C o n s e r v a t i v e s of c o n f r o n t a t i o n . C o n f r o n t a t i o n has come t o mean something r a t h e r d i f f e r e n t . But we a r e s t i l l a c c u s e d of p r o v o c a t i o n , b e c a u s e we p o i n t t o t h i n g s t h a t e v e r y o n e knows a r e wrong. F o r example, Mr Moss Evans s a y s t h a t i f we c o n t i n u e to provoke th e u n i o n s , then we w i l l q u i t e n a t u r a l l y "get a response''. I t a p p e a r s t h a t t h a t r e s p o n s e

I B

«ay t a k e t h e f o r m o f a day o f a c t i o n . B u t i t i s r e a l l y j u s t a n o t h e r ay o f i n a c t i o n , i n w h i c h p e o p l e a r e e n c o u r a g e d t o p r o d u c e n o t h i n g , i n

o r d e r t o w i n h i g h e r l i v i n g s t a n d a r d s .

Mr Evans p r o m i s e s " b l o o d y r e v o l u t i o n " i f l a r g e numbers o f j o b s a r e l o s t a t B r i t i s h L e y l a n d . M e a n w h i l e , t h e C o n f e d e r a t i o n o f S h i p b u i l d i n g and E n g i n e e r i n g U n i o n s d e p r i v e s i n d u s t r y o.f <f̂ wwrt^awi w o r k i n g days each week by s t r i k e a c t i o n .

We see t h e same l a c k o f r e a s o n e d a r g u m e n t on economic m a t t e r s . Mr Tom J a c k s o n t e l l s us t h a t u n i o n members c a n n o t h o l d b a c k on pay demands. Y e t i t a p p e a r s t h a t t h e y can e a s i l y h o l d b a c k on p r o d u c t i o n , by g o i n g on s t r i k e . What can t h e y do t o i n c r e a s e pay, i f n a t i o n a l o u t p u t has n o t i n c r e a s e d ? I f Mr J a c k s o n can g i v e us a f o r m u l a f o r d o i n g t h a t , many o f o u r p r o b l e m s w o u l d be s o l v e d . As i t i s , t h e a c t i o n he and h i s c o l l e a g u e s p r o p o s e i s d a n g e r o u s l y c l o s e t o t h e one s u g g e s t e d by t h e C h a n c e l l o r l a s t weekend - t h a t p e r h a p s t h e w h o l e c o u n t r y s h o u l d go on p e r m a n e n t s t r i k e f o r West German l i v i n g s t a n d a r d s !

And i n c a s e you t h i n k t h a t t h i s i s an e x a g g e r a t i o n , l i s t e n t o what a T r a n s p o r t and G e n e r a l Workers spokesman s a i d when p r o m i s i n g t h a t l o r r y d r i v e r s w o u l d c l a i m a 1 0 0 % i n c r e a s e . "Our l a d s d r i v e on t h e c o n t i n e n t and see w hat t h e i r wages a r e . They g e t t w i c e as much as we do, and we w i l l be l o o k i n g f o r s o m e t h i n g i n l i n e w i t h t h e m . " *

The e v e n t s o f l a s t w i n t e r c o n f r o n t e d most p e o p l e ' s s e n s e o f r i g h t and w r o n g . Much o f w h a t was s a i d a t B l a c k p o o l i n s u l t e d t h e i r i n t e l l i g e n c e . What chance i s t h e r e t h a t t h i s d r e a m i n g and r a n t i n g w i l l g i v e way t o r e a l i s m and d e b a t e ? I n f a c t , I t h i n k t h a t we s h o u l d be h o p e f u l ­p a t i e n t and c a l m t b u t h o p e f u l . More and more u n i o n members a r e b e g i n n i n g t o q u e s t i o n t h e i r l e a d e r s ' a c t i o n s . T h e r e a r e r e s p o n s i b l e l e a d e r s who know how much has gone w r o n g , t h o u g h few o f them a r e p r e p a r e d , as Mr S i d n e y W e i g h e l l was, l a s t week, t o r a i s e any o f t h e r e a l i s s u e s f o r p u b l i c d i s c u s s i o n .

We have t o h e l p t h e t r a d e u n i o n movement t o f i n d i t s way a g a i n . I t t a k e s two t o c o n s u l t . Each s i d e must l i s t e n . I t does n o t mean t h a t t h e y have t o a g r e e , b u t t h e y must l i s t e n t o o t h e r p o i n t s o f v i e w and g i v e r e a s o n e d a n s w e r s . Most p e o p l e know t o d a y t h a t t h e u n i o n

• R e p o r t i n t h e E v e n i n g S t a n d a r d , 4 September 1979

^ l e a d e r s h i p w i l l o n l y a c c e p t a one-way d e b a t e w i t h t h e p u b l i c - a d e b a t e i n w h i c h t h e y c a n s p e a k and c r i t i c i s e w h i l e o t h e r s l i s t e n , b u t w here a d v i c e and c r i t i c i s m o f t h e m s e l v e s and t h e i r a c t i o n s i s i m m e d i a t e l y s h o u t e d down.

I am s a d t h a t t h e u n i o n l e a d e r s d i d n o t s e i z e t h e o p p o r t u n i t y a t B l a c k p o o l t o d i s c u s s t h e t h i n g s t h a t r e a l l y m a t t e r . B u t we must do so, and c o n t i n u e p a t i e n t l y d o i n g so, u n t i l t h e y a r e r e a d y t o j o i n t h e d e b a t e .

I t i s c r u c i a l l y i m p o r t a n t t h a t e v e r y o n e , t r a d e u n i o n members and non-members a l i k e , u n d e r s t a n d t h a t t h i s Government i s r e s o l v e d t o c u r e i n f l a t i o n . I f u n i o n l e a d e r s t r y t o e x t r a c t b i g pay i n c r e a s e s f r o m a n o - g r o w t h economy, w h i c h i s what we now h a v e , a t t h e same t i m e M we s q u e e z e o u t i n f l a t i o n , a l l t h e y w i l l do i s p u t h u n d r e d s o f t h o u s a n d s more o f t h e i r members and o t h e r w o r k e r s i n t o t h e d o l e queues. ( T h i s l a s t p a r a g r a p h m i g h t be b e t t e r i n s e r t e d somewhere e l s e , b u t i t s h o u l d be a s t a n d a r d p a r t o f e v e r y s p e e c h and i n t e r v i e w f o r t h e n e x t t h r e e m o n t h s . )

3B